The Biggest Questions Selling Farmland on Auction

Is Now a Good Time to Sell?

Is now a good time to sell has to be the biggest question selling farmland on auction. The current farmland market is trending upward, quality farms are leading the pace with multiple buyers actively purchasing Iowa farmland at record pace. The caveat is not the amount of farms being bought but the price buyers are willing to pay. Multiple factors are pushing prices which include historically low interest rates, climbing commodity prices, lack of land available, and the eager approach of generational farmers wanting to expand in the localized area. The farmland market is trending higher but for how long? Some folks selling might be looking to capitalize on higher land values following the peak in 2013, which makes sense. The toughest decision these sellers have to make is how am I going to sell the farm and who is going to sell the farm?

Do Online on Sales Best Represent Iowa Farmland Sellers?

Online land auctions are the current trend some firms are pushing. As an auctioneer myself, I must say this “online only” concept goes against the grain. It is our duty, at Iowa Land Company, to sell your asset using the most tried and true method there is. Chances are we will only represent you once, please take the right approach the first time…. Because that is the only time you have the opportunity to sell it. Buyers in rural Iowa demand live auctions. I would say that only 1 out of 20 buyers want to bid online. We offer live/online auctions the purest and simplest way to reach top dollar for Iowa farmland. Million dollar assets should not be dependent solely on the internet and third party fiber optic lines. Here is a little insight on rural Iowa and the current internet concerns. The reality is rural Iowa internet needs updates and improvements Iowa and the nation need real rural broadband solutions. Clearly, we are not against providing the option of online bidding; we provide the service in conjunction with our live auction approach which has been used for multiple decades. We just believe in doing things correct the first time.

Is it Really a Public Auction Selling Farmland Online?

Iowa farmers who have purchased farms in the past 50 years have used the live auction method to buy 75% of the farmland available in the state per the year. Sure tensions can run high at and auction but isn’t this one of the reasons the process works? Farming can be competitive. Buying farmland on auction is competitive. Auction – Noun – a public sale in which goods or property are sold to the highest bidder. “the books are expected to fetch a six-figure sum at tomorrow’s auction” Our firm has sold thousands of acres on auction for clients over the years. We have run into every situation possible prior too, during, and following the auction. I have yet to run into a buyer say they never had a fair chance at buying the farm. Auctions are simple but effective. Buyers negotiate amongst each other taking others out of the equation until buyers reach a point they are willing to pay for the farm. It is a win win for the seller, it’s a proven method. Understand that online only sales take this transparency out of the process. Buyers tend to get curious on who actually is bidding behind the screen taking confidence out of the buyer’s motives. We have talked with hundreds of buyers, both local and regional investors, and it is mind blowing how many would rather bid in person or on the phone with an on-site representative rather than online depending on the web. Amidst Covid-19 pandemic, many thought the situation would force buyers online as the world was shutting down everyone would disappear during live land auction right? Here’s a recap on a sale that Iowa Land Company conducted right in the middle of the pandemic. Eighteen buyers participated and no one chose to bid online. Keep in mind, it was blowing 45 knots during the sale, and bidder’s still chose to show up to the farm to bid instead of bidding online. Click here for more insight!

How to Protect Your Farm by Selling Farmland on Auction?

You have one time to sell a farm you cannot say “No, I didn’t like know how that went. It just didn’t go well.” When you select a firm you put 100% good faith in them. Conducting a quality, well put together sale where buyers feel comfortable is the process. These buyers will tell you if it was a bad sale, I asked what exactly is a bad sale? “One where buyers did not have confidence of who really was bidding on the farm?” “One where the FSA information was not readily available, and finally sales where firms with bad reputations conduct sales.” The best decisions are gut decisions knowing a firm is going to take care of your best interest from day one, and Iowa Land Company makes a priority to do just that!

Best Way to Sell Quality Farmland?

The current farmland market is rolling ahead with steam in the market and buyers are searching for land which is turning the market into a sellers market. Not too long ago in 2018, the market was a buyers market where buyers were in position more than ever. Live public auctions are currently fetching premium when advertised aggressively and conducted properly. We expect this market to stick around until something changes in the future landscape. There are multiple factors that can push Iowa farmland values up or down. To learn more, reach out to one of our local land brokers for current market conditions or to book a sale. Our local market knowledge has created an industry leading standard. We do this for a living because we enjoy the process and helping land buyers and sellers. Our firm is branded in Iowa Land. 

Farmland Auctions Work Best IF Done Right!

Bottom line is this, farmland auctions work and they work well. It is the fastest, fairest, simplest way to sell farms at ultra high prices. Buyers compete for grain growing farmland to advance their business and extend the generational farm in hopes to leave the farm better than when they had received it. Chances are multiple buyers want your farm, providing buyers with an online/live auctions presence is the only way to cover your bases. To learn more about our land auction platform, contact our Land Broker/Auctioneers today. We will share industry insight and our process that sets the standard. Our brand is positioned to attract buyers nationwide. All our buyers are vetted prior to your sale ensuring when the hammer drops you have a strong buyer in place. The process is the fairest way to sell Iowa Farmland IF done correctly!

Reach out to Iowa Land Company at 515-962-5048 or email us at info@iowalandcompany.com. We have multiple offices across the state, and one of our local land managers or land brokers would enjoy the conversation.